HealthSouth

HealthSouth cut 20 percent of its headquarters staff Thursday as five more executives agreed to plead guilty in a huge accounting fraud case.

The layoff of 165 people was HealthSouth's first mass personnel cut since the government accused it of overstating earnings by more than $1 billion to make it appear the company was meeting Wall Street forecasts.

Meanwhile in court, five more HealthSouth executives admitted taking part in a scheme that already had resulted in guilty pleas from three top executives and a criminal probe of ousted founder and CEO Richard Scrushy.

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